Pennsylvania Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Pennsylvania's Automobile Lemon Law covers new vehicles designed to carry no more than 15 people, bought or leased and registered in Pennsylvania for personal, family or household use, including motorcycles (but not motor homes or off-road vehicles). The manufacturer must repair, at no cost, a defect that substantially impairs the vehicle's use, value or safety that occurs within one year of delivery, the first 12,000 miles, or the warranty term, whichever comes first (for motorcycles, one year or the warranty term). If it fails after a reasonable number of attempts, the manufacturer must, at the buyer's choice, replace the vehicle with a comparable one or refund the full purchase or lease price, including collateral charges, minus a use allowance of no more than 10 cents per mile or 10% of the price, whichever is less; a refund must be paid within 30 days of the buyer's choice. A reasonable number of attempts is presumed if the same defect was repaired three times and still exists, or the vehicle was out of service 30 or more calendar days. If the manufacturer has a qualifying informal dispute program, the buyer must use it before suing, but its decision does not bind the buyer. A buyer who sues may recover reasonable attorneys' fees and court costs.

When goods or services costing $25 or more are sold through contact with the buyer at the buyer's home, in person or by telephone, the buyer may cancel by written notice to the seller within three full business days after the sale and by returning or holding the goods available for return. Notice is effective when mailed. The seller must give the buyer a contract or receipt stating the right to cancel and a "Notice of Cancellation" form, and must return payments and trade-ins within 10 business days after cancellation. Separately, anyone who signs a home improvement contract may cancel it without penalty within three business days of signing, wherever it was signed.

Pennsylvania's Unfair Trade Practices and Consumer Protection Law prohibits unfair methods of competition and unfair or deceptive acts or practices in trade or commerce, and the Attorney General's Bureau of Consumer Protection enforces it. A person who buys or leases goods or services mainly for personal, family or household purposes and suffers an ascertainable loss of money or property because of an unlawful practice may sue for actual damages or $100, whichever is greater. The court may award up to three times actual damages, plus costs and reasonable attorney fees.

Attorney General regulations make it an unfair or deceptive practice for a repair shop to charge for repairs, or a price, that the customer did not authorize in writing (or that was not clearly posted). If the exact repairs or cost are not known at drop-off, the customer must be offered a choice: no work until the customer approves the exact repairs and total price; work up to a price limit the customer sets; or work without a price limit after being told the hourly labor rate. Shops must write down the customer's request before starting, disclose whether parts are new, used or rebuilt and any estimate or storage charges, tell customers they may have replaced parts returned or inspect them on request, keep records of oral authorizations, fix poor-quality work promptly at no charge when the customer complains promptly, and give a dated, itemized invoice.

Under Pennsylvania's Debt Management Services Act, anyone who provides or advertises debt management services (handling payments to creditors) or debt settlement services for a fee must be licensed by the Department of Banking. For debt management plans, the law limits fees to an initial consultation fee and a capped monthly maintenance fee (with limits adjusted yearly for inflation), and no fees may be charged until a written agreement is signed. Under the Credit Services Act, credit repair companies may not take payment before fully performing their services unless they have a surety bond or in-state trust account, must use a written contract that lets the buyer cancel before midnight of the fifth day after the transaction, and are liable for at least the amount the buyer paid, plus attorney fees and possible punitive damages.

Under the Home Improvement Consumer Protection Act, home improvement contractors must register with the Attorney General's Bureau of Consumer Protection before doing work. A home improvement contract is not enforceable against the owner unless it is written, signed, and includes the contractor's registration number, start and completion dates, a description of the work and materials, the total price (or a time-and-materials estimate that cannot be exceeded by more than 10% without a signed change order), any down payment, subcontractor information, insurance information and a notice of the three-business-day right to cancel. Contractors may not take payment before the contract is signed, and for contracts over $5,000 may not take a deposit of more than one-third of the price (plus the cost of special-order materials), with a limited exception for certain large retailers. The Attorney General notes registration is not an endorsement and offers a Home Improvement hotline at 1-888-520-6680.

An entity that maintains, stores or manages computerized personal information must notify Pennsylvania residents whose unencrypted and unredacted personal information was or is reasonably believed to have been accessed and acquired by an unauthorized person, without unreasonable delay. Personal information includes a name combined with a Social Security number, driver's license or state ID number, financial account or card number with its access code, health insurance information, or an online username or email with its password or security answer. If more than 500 Pennsylvania residents must be notified, the Attorney General must be notified at the same time. If a breach exposes a name with a Social Security number, bank account number, or driver's license or state ID number, the entity must offer a free credit report and 12 months of credit monitoring.

Consumers can submit a complaint to the Pennsylvania Office of Attorney General online or by printing and mailing a complaint form (available in English and Spanish); separate forms cover scams, aviation, Do Not Call, health care and other issues. The Bureau of Consumer Protection mediates consumer complaints and can take legal action against businesses engaged in unfair practices when it serves the public interest.

1) Repairs: the defect must occur within one year after delivery, the first 12,000 miles, or the warranty term, whichever comes first (for motorcycles, one year or the warranty term). The purchaser must take the vehicle to the manufacturer's authorized repair facility in Pennsylvania; if the defect makes that impossible, written notice of the defect to the manufacturer or its repair facility counts as returning the vehicle. Keep the itemized repair statements the dealer must provide each visit. When the vehicle comes back to the same dealer a second time for the same defect, the dealer must notify the manufacturer by certified mail within seven days. The Act does not require a separate written notice from the consumer or a final repair attempt before a claim. 2) Arbitration: if the manufacturer has an informal dispute settlement procedure that complies with federal rules (16 C.F.R. part 703), the purchaser must use it first before suing over defects affecting use, value or safety. The decision is not binding on the purchaser, who may then sue. The Act does not create a state-run arbitration program or set a consumer fee. 3) Lawsuit: the purchaser may file a civil action in a court of common pleas and, if successful, recovers reasonable attorney's fees and court costs. The Act does not state a specific deadline to sue.